ontarioguy
13-06-2003, 18:32
[SOURCE TORONTO STAR]
Nokia Corp., the world's biggest mobile phone maker, said today that sales of its handsets could be at the low end of its earlier forecasts in the current quarter because of a European economic slowdown and the U.S. dollar's slide.
The company also cautioned that lingering fears about the spread of severe acute respiratory syndrome in Asia would likely have an effect on sales there, particularly in China where the company is making a big push to sell phones.
Nokia said growth in sales of its cellphones would likely be on the low end of the four to 12 per cent range it has forecast.
Regardless, the company said it still expects to post an increase in market share with phones sold worldwide.
The Espoo, Finland-based company said it still expects pro forma earnings to be within 15 to 19 U.S. cents a share, in line with its initial estimates.
Nokia's forecast came a day after rival Motorola Inc. said it would fall short of Wall Street estimates for earnings and sales in the second quarter due to a glut of cellphones and the spread of SARS in Asia.
Schaumburg, Ill.-based Motorola intends to lower its full-year sales and earnings estimates when it announces quarterly results in mid-July.
Nokia leads global sales of mobile handsets with about 35.8 per cent of all mobile phones sold, according to Gartner Dataquest. Last year, Nokia claimed a 38 per cent market share.
Second-quarter sales at Nokia's networks division were estimated to have been flat to down five percent, compared with the same period a year ago — the result of fewer companies investing money to increase their network capabilities.
Nokia said pro forma operating profit for the networks division, stripping out the restructuring charge, is estimated to be close to break-even in the second quarter.
Nokia Corp., the world's biggest mobile phone maker, said today that sales of its handsets could be at the low end of its earlier forecasts in the current quarter because of a European economic slowdown and the U.S. dollar's slide.
The company also cautioned that lingering fears about the spread of severe acute respiratory syndrome in Asia would likely have an effect on sales there, particularly in China where the company is making a big push to sell phones.
Nokia said growth in sales of its cellphones would likely be on the low end of the four to 12 per cent range it has forecast.
Regardless, the company said it still expects to post an increase in market share with phones sold worldwide.
The Espoo, Finland-based company said it still expects pro forma earnings to be within 15 to 19 U.S. cents a share, in line with its initial estimates.
Nokia's forecast came a day after rival Motorola Inc. said it would fall short of Wall Street estimates for earnings and sales in the second quarter due to a glut of cellphones and the spread of SARS in Asia.
Schaumburg, Ill.-based Motorola intends to lower its full-year sales and earnings estimates when it announces quarterly results in mid-July.
Nokia leads global sales of mobile handsets with about 35.8 per cent of all mobile phones sold, according to Gartner Dataquest. Last year, Nokia claimed a 38 per cent market share.
Second-quarter sales at Nokia's networks division were estimated to have been flat to down five percent, compared with the same period a year ago — the result of fewer companies investing money to increase their network capabilities.
Nokia said pro forma operating profit for the networks division, stripping out the restructuring charge, is estimated to be close to break-even in the second quarter.